Subject: FW: Economics 101 Enron
Date: Fri, 1 Feb 2002 13:01:50 +1100 



> Lloyd Marbet forwarded this Economics 101 text - 
> 
> Traditional Capitalism: 
> 
> You have two cows.
> You sell one and buy a bull.
> Your herd multiplies, and the economy grows.
> You sell them and retire on the income.
> 
> Enron Venture Capitalism:
>  
> You have two cows.
> You sell three of them to your publicly listed company, using letters of
> credit opened by your brother-in-law at the bank, then execute a
> debt/equity swap with an associated general offer so that you get all
> four cows back, with a tax exemption for five cows. The milk rights of
> the six cows are transferred via an intermediary to a Cayman Island
> company secretly owned by the majority shareholder who sells the rights
> to all seven cows back to your listed company. The annual report says
> the company owns eight cows, with an option on one more. You sell one
> cow to buy a new president of the United States from Texas, leaving
> you with nine cows. No balance sheet is provided with the release of
> the annual report
> 
> The public buys your bull and you use a small portion of your profits to
> buy Congress's support for deregulating all transactions involving cows.
> 
> Nic...off!
> x350214 - IU560 - IWW
> http://www.iww.org.au/
> http://www.asf.anarki.net/
> <>-<>-<>-<>-<>-<>-<>-<>-<>-<>-<>-<>-<>-<>-<>-<>-<>
> <>"Inequality is the source of all revolutions; <>
> <> no compensation can make up for inequality." <>
> <>-Aristotle, Politics                          <>
> <>-<>-<>-<>-<>-<>-<>-<>-<>-<>-<>-<>-<>-<>-<>-<>-<>